The pan-European Stoxx 600 was up 0.23 percent with most stocks trading in positive territory. Basic Resources stocks outperformed their peers during Tuesday's session, jumping more than 3.4 percent.

Meanwhile, in the U.S., the Dow Jones industrial average continued higher with all three main U.S. stock indices trading at record highs as investors digested President-elect Donald Trump's policy agenda.

Oil hits monthly peak

Oil prices reached a monthly peak on Tuesday, helping risk assets, despite a tsunami in Japan from a 7.4 magnitude quake. Goldman Sachs said in a note on Monday: "The increased likelihood of an OPEC cut motivates our near-term forecast upgrade. Stronger than expected demand growth and lower production from high-cost countries increase our confidence that the global oil market will shift into deficit by (the second half of 2017) even with OPEC production above current levels."

The market remained sensitive to comments from OPEC members, with Iraq and Iran hesitant to cut output.However a growing consensus among investors is that the oil producers would settle internal disputes and reach a deal, Reuters reported.

Brent crude was trading around $48.80 a barrel, down 0.09 percent at the European close, while WTI crude was selling at $47.78 a barrel, down 0.93 percent.

Hoax report

Vinci shares dipped suddenly on Tuesday after a hoax media report suggested the French construction and concessions company were set to revise 2015 and 2016 accounts and fire its finance director. Shares were down 3.7 percent on Tuesday's close.

In Europe, Prime Minister Theresa May is chairing a cabinet meeting on Tuesday amid reports of divisions surrounding Brexit. In the U.S., President-elect Donald Trump presented on Monday his plans for his first day in office, including withdrawing from a major trade accord with Pacific countries and investigating abuses of work visa programs.